Landlords from Ontario I need help on pricing
Hey guys and girls,
I was listening to the bp podcast today show 11. They were saying to charge 2% of purchase price on rentals. I’ve been looking at houses in Ontario and they are priced pretty high for what they are. A small pretty near trailer is worth over $100,000, now to rent that out at 2 percent would be way to high. They say start small and grow but the ones that are worth while that will get a 2% return are duplexes or fourplexes. Would this be an ok entry investment or would I be best to start with a single family home. Do you have any tips. I am just starting out....
Most Popular Reply
Hey @Cole Black,
Welcome to BP and Real Estate! I am just in my beginning phases as well! It is tough with how pricey real estate is here, but definitely not impossible. 2% is great, but the 1% is also okay. Read this article here, I found it helpful when I was trying to understand everything.
https://affordanything.com/one-percent-rule-gross-rent-multiplier/